9 Apr 2015
BoJ might ease further in October – Nomura
FXStreet (Barcelona) - Japan Economists at Nomura expect further easing by the BoJ in October, and also expect the central bank to increase its asset purchases by ¥10trn for JGBs.
Key Quotes
“Based on the statement on monetary policy and the press conference, we retain our view that the BOJ will implement additional easing measures in October, including increasing its annual purchase budgets for JGBs by ¥10trn and for equity ETFs by ¥3trn.”
“At the latest monetary policy meeting, Policy Board member Mr Takahide Kiuchi proposed that the BOJ should conduct money market operations and asset purchases so that the monetary base and the amount outstanding of its JGB holdings will increase at an annual pace of about ¥45trn, respectively.”
“Having previously urged the Policy Board to return to the asset purchase program that existed prior to 31 October 2014 (long-term JGB purchases of around ¥50trn a year) from the November 2014 meeting onwards, Mr Kiuchi effectively called for tapering at the latest meeting by arguing for JGB purchases of ¥45trn instead.”
“Although this proposal was defeated by majority vote, it will be interesting to see what sort of discussions took place when the minutes of the meeting are released on 8 May.”
Key Quotes
“Based on the statement on monetary policy and the press conference, we retain our view that the BOJ will implement additional easing measures in October, including increasing its annual purchase budgets for JGBs by ¥10trn and for equity ETFs by ¥3trn.”
“At the latest monetary policy meeting, Policy Board member Mr Takahide Kiuchi proposed that the BOJ should conduct money market operations and asset purchases so that the monetary base and the amount outstanding of its JGB holdings will increase at an annual pace of about ¥45trn, respectively.”
“Having previously urged the Policy Board to return to the asset purchase program that existed prior to 31 October 2014 (long-term JGB purchases of around ¥50trn a year) from the November 2014 meeting onwards, Mr Kiuchi effectively called for tapering at the latest meeting by arguing for JGB purchases of ¥45trn instead.”
“Although this proposal was defeated by majority vote, it will be interesting to see what sort of discussions took place when the minutes of the meeting are released on 8 May.”